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Question: Ell, Far, and Gar are partners who


Ell, Far, and Gar are partners who share profits and losses 30 percent, 30 percent, and 40 percent, respectively, after Ell and Far each receive a $32,000 salary allowance. Capital balances on January 1, 2016, are as follows:

Ell (30%).................................. $69,000
Far (30%).................................... 85,500
Gar (40%)................................. 245,500

During 2016, Gar invested an additional $20,000 in the partnership, and Ell and Far each withdrew $32,000, equal to their salary allowances as provided by the profit- and loss-sharing agreement. The partnership net assets at December 31, 2016, were $481,000.

REQUIRED:
Prepare a statement of partnership capital for the year ended December 31, 2016.


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> If a parent owns 80 percent of the voting stock of a subsidiary, and the subsidiary in turn owns 20 percent of the stock of the parent, what kind of affiliation structure is involved? Explain.

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> What alternative approaches can be used in recording the admission of a new partner?

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> Explain how a partner could have a loss from partnership operations for a period even though the partnership had net income.

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> Bob invests $10,000 cash for a 25 percent interest in the capital and earnings of the BOP Partnership. Explain how this investment could give rise to (a) recording goodwill, (b) the write-down of the partnership assets, (c) a bonus to old partners, and (

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> Arn, Bev, and Car are partners who share profits and losses 30:30:40, respectively, after Bev, who manages the partnership, receives a bonus of 10 percent of income, net of the bonus. Partnership income for the year is $198,000. REQUIRED: Prepare a sche

> Car and Lam establish an equal partnership in both equity and profits to operate a used-furniture business under the name of C&L Furniture. Car contributes furniture inventory that cost $120,000 and has fair value of $160,000. Lam contributes $60,000 cas

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> 1. Partners All, Bak, and Coe share profits and losses 50:30:20, respectively. The balance sheet at April 30, 2016, follows: The assets and liabilities are recorded and presented at their respective fair values. Jon is to be admitted as a new partner w

> 1. Cob, Inc., a partner in TLC Partnership, assigns its partnership interest to Ben, who is not made a partner. After the assignment, Ben asserts the rights to: I. Participate in the management of TLC II. Cob’s share of TLC’s partnership profits Ben is c

> 1. Shi purchased an interest in the Ton and Olg partnership by paying Ton $40,000 for half of his capital and half of his 50 percent profit-sharing interest. At the time, Ton’s capital balance was $30,000 and Olg’s cap

> 1. Bil and Ken enter into a partnership agreement in which Bil is to have a 60 percent interest in capital and profits and Ken is to have a 40 percent interest in capital and profits. Bil contributes the following: There is a $30,000 mortgage on the bu

> The capital account balances and profit- and loss-sharing ratios of the Byd, Box, Dar, and Fus partnership on December 31, 2016, after closing entries are as follows: Byd (30%)............................ $30,000 Box (20%)..............................

> Kat and Edd formed the K & E partnership several years ago. Capital account balances on January 1, 2016, were as follows: Kat................................... $496,750 Edd.................................. $268,250 The partnership agreement provides

> A balance sheet at December 31, 2016, for the Bec, Dee, and Lyn partnership is summarized as follows: Dee is retiring from the partnership. The partners agree that partnership assets, excluding Dee’s loan, should be adjusted to their

> Capital balances and profit- and loss-sharing ratios for the Nix, Man, and Per partnership on December 31, 2016, just before the retirement of Nix, are as follows: Nix capital (30%)................................... $128,000 Man capital (30%)..........

> Capital balances and profit-sharing percentages for the partnership of Man, Eme, and Fot on January 1, 2016, are as follows: Man (36%)............................ $140,000 Eme (24%).............................. 100,000 Fot (40%)........................

> The capital balances and profits- and loss-sharing percentages for the Sip, Jog, and Run partnership at December 31, 2016, are as follows: Sip capital (30%)............................ $160,000 Jog capital (50%)........................... $180,000 Run c

> Are the treasury stock and conventional approaches equally applicable to all mutual holdings? Explain.

> Bow and Mon are partners in a retail business and divide profits 60 percent to Bow and 40 percent to Mon. Their capital balances at December 31, 2016, are as follows: Bow capital................................... $120,000 Mon capital...................

> The capital accounts of the Fax and Bel partnership on September 30, 2016, were: Fax capital (75% profit)..................... $140,000 Bel capital (25% profit).......................... 60,000 Total capital........................................ $200,

> Revenue information for Mahoney Corporation is as follows: Consolidated revenue (from the income statement).............. $400,000 Intersegment sales and transfers.................................................. 80,000 Combined revenues of all industr

> What is the difference between the integral theory and the discrete theory with respect to interim financial reporting?

> Describe the 10 percent revenue test for determining reportable segments.

> Describe the 10 percent operating-profit test for determining reportable segments.

> How are the segments that are not reportable segments handled in the required disclosures of FASB ASC Topic 280?

> What is a reportable segment according to FASB ASC Topic 280? What criteria are used in determining what operating segments are also reportable segments?

> What is an operating segment?

> Describe the minimum financial information to be disclosed in interim reports under the provisions of FASB ASC Topic 270.

> P owns 80 percent of S1, and S1 owns 70 percent of S2. Separate incomes of P, S1, and S2 are $20,000, $10,000, and $5,000, respectively, for 2016. During 2016, S1 sold land to P at a gain of $1,000. Compute S1’s income on an equity basis. Discuss why you

> Explain how a company estimates its annual effective tax rate for interim reporting purposes.

> Do the requirements of FASB ASC Topic 280 apply to financial statements for interim periods? If so, how?

> Must a major customer be identified by name?

> When is an enterprise required to include information in its financial statements about its foreign and domestic operations?

> What disclosures are required for the reportable segments and all remaining segments in the aggregate?

> Assume that an enterprise has 10 operating segments. Of these, five segments qualify as reportable segments by passing one of the 10 percent tests. However, their combined revenues from sales to unaffiliated customers total only 70 percent of the combine

> Describe the 10 percent asset test for determining reportable segments.

> When preparing interim reports, does an entity need to use the same method to value inventory that they use at the annual report date? What options are accepted?

> Does an entity need to disclose segment level information about depreciation and amortization (D&A) if the chief decision maker does not consider D&A in their assessment of the segments?

2.99

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